Dr Reddy's Laboratories, a major player in the pharmaceutical industry, reported disappointing results for the March quarter (Q4FY26), with consolidated revenue of ₹7,969.2 crore, down 6.3% year-on-year. Profit after tax (PAT) also saw a significant decline of 43.7% to ₹931.7 crore, largely attributed to a sharp drop in sales of Revlimid, a key high-margin drug that recently lost patent protection in the US. Analysts are particularly concerned about the company's core US business, which remains weak, and the ongoing pricing pressures in the generics market. Emkay Global noted that the adjusted Q4 Ebitda margin was only 14.5%, nearly 400 basis points below expectations, reflecting the challenges faced by Dr Reddy's in maintaining profitability. Brokerages have responded by lowering earnings estimates for FY27 and FY28 by approximately 5%. They also highlighted delays in the launch of semaglutide, which is seen as a long-term growth opportunity, as well as uncertainty surrounding biosimilar approvals like abatacept. Overall, while there are long-term prospects in semaglutide and biosimilars, analysts believe the stock lacks immediate positive catalysts, leading to a cautious outlook.